The percentage of trades that result in a profit.
Win rate is simply the number of winning trades divided by the total number of trades, expressed as a percentage. If you win 60 out of 100 trades, your win rate is 60%. It is one of the most commonly tracked trading metrics, but on its own it tells you very little about profitability.
Win rate is meaningless without context. A 90% win rate is worthless if your losses are 10x your wins. A 30% win rate can be extremely profitable if your average winner is 5x your average loser. Always evaluate win rate alongside your risk–reward ratio and expectancy.
Trader A wins 80% of trades but averages only 0.3R per win. Expectancy = (0.80 × 0.3) – (0.20 × 1) = –0.04R. Trader B wins 35% of trades but averages 3R per win. Expectancy = (0.35 × 3) – (0.65 × 1) = +0.40R. Trader B is far more profitable despite a lower win rate.
A sample of 10 trades showing 6 wins and 4 losses — a 60% win rate. But profitability depends on how large the wins are versus the losses.